Top 15 Climate Tech Trends to Be Ready for in 2024: The Future is Looking Greener

ClimateAngels | Sep 23, 2023

“In 2023 so far, we have witnessed the climate technology sector evolve at an unprecedented rate. What do these advancements imply for our climate tech strategies and initiatives in 2024 and beyond? In this week’s last blog post, let’s delve into the top 15 climate tech trends to watch out for in 2024. Explore this blog to discover valuable insights into emerging trends and how climate tech startups and investors can prepare for them in the coming year.”

The past few decades and recent years have seen a significant surge in innovations in the climate technology sector, reshaping our environment in ways we could only imagine in science fiction.

In this era of rapid climate tech evolution, keeping abreast of current trends isn’t just advantageous — it’s crucial.

As we approach 2024 (in about three months or so), this article aims to shed light on the climate tech space that is growing big silently. Let’s see what lies ahead in the upcoming revolutions in the climate tech sector.

We’ll delve into the top 15 climate tech trends in areas like Carbon Capture, EVs, Electric Mobility, Sustainable Land and Water Management, Climate Modelling, Renewable Energy, and more.

Let’s hop on, shall we?

So, the Top 15 Climate Tech Trends to Watch Out for in 2024 include:

1. More Positive Legislation

As we journey through 2023, the combat against climate change is not just a societal concern, but a business one too. So, what’s on the horizon?

Well, brace yourselves for more legislation in the upcoming year! If you’re thinking of starting a climate tech company, this could be your ally. With more industries being regulated and governments worldwide stepping up their game, we’re all in this together.

In India, the Ministry of Environment, Forest & Climate Change (MoEFCC), along with the Central Pollution Control Board (CPCB) and the State Pollution Control Boards (SPCBs), administer and enforce environmental laws. The Indian Constitution lays down the foundation for all environmental laws, and there has been a clear trend of environmental policies being driven by the judiciary since the late 1980s and early 1990s.

For instance, the National Green Tribunal (NGT) Act, 2010 acknowledges principles such as sustainable development, the “polluter pays” principle, and the precautionary principle.

Furthermore, India’s Updated Nationally Determined Contribution (NDC) translates COP26 announcements into enhanced climate targets, marking a major step in achieving India’s long-term goal of reaching net zero by 2070.

These are just some examples of India’s shift towards a climate-conscious regulatory environment.

This means sectors like transportation, oil, natural gas, and power should prepare for game-changing regulations. Tech companies will need to keep pace with these evolving regulations. Yes, it might be challenging, but it also opens up new opportunities, including financial support for climate and energy projects.

So, let’s keep our eyes on these trends as we strive for a greener future. After all, every step we take today is a step towards a better tomorrow.

2. More Money Influx

Business investments or say corporate money is flooding into climate tech. As per the PwC’s State of Climate Tech 2022 report, climate technology is receiving over a quarter of all venture capital funding. Despite the venture slowdown in 2023, the climate tech sector remains robust compared to other industries.

Investors are honing in on technologies with the greatest potential to reduce emissions – a logical move considering the global push towards climate neutrality.

Beyond clean energy, venture capital (VC) is showing interest in carbon capture and technologies that could transform supply chains.

3. Sustainable Mobility

The transportation sector is making strides towards reducing its carbon footprint. Automotive manufacturers are developing electric vehicles (EVs), with government subsidies accelerating their market penetration. Mobility companies are also offering EVs for shared mobility.

Startups are introducing micromobility solutions like electric scooters and e-bikes for urban areas, corporate campuses, and universities. Some climate tech startups incentivize customers to use cleaner mobility options, promoting eco-friendly behaviour.

For instance, Saudi startup GAZAL provides on-demand bikes and scooters via a smartphone app, reducing the carbon footprint of the mobility sector. Indian startup Dandera Technologies produces electric three-wheelers for various applications, enabling low carbon mobility without upfront costs.

In a broader prospect, the transportation sector is rapidly evolving towards electrification and shared mobility, with startups playing a crucial role in this transition.

4. Circular Economy

The linear economy’s continuous demand for new materials leads to increased consumption of raw materials and other resources, accelerating GHG emissions and climate change. The circular economy, however, reintroduces low-value, end-of-life products and materials into circulation.

Climate tech startups are facilitating this transition through transparent reverse logistics platforms and stringent waste management methods. These strategies maximize material recovery, reuse, recycling, and upcycling, reducing the carbon footprint and creating a market for recovered materials.

For example, Dutch startup Seenons has developed a reverse logistics platform that connects waste chain stakeholders to facilitate waste flow. This allows cities and municipalities to significantly reduce residual waste ending up in landfills.

Another Dutch startup, TripleE, has developed a decentralized data platform for circular battery use. This platform allows EV battery and electric car manufacturers to analyze various parameters of batteries and track them, ensuring a second life for wasted batteries and reducing their carbon footprint.

Meaning, that the shift from a linear to a circular economy is being facilitated by innovative climate tech startups, leading to significant reductions in GHG emissions.

5. Energy and Transport

Climate tech has seen a significant increase in exit activity over the past two years, with a 70% year-on-year growth. The majority of these exits (64%) have been in the transport and energy sectors.

This suggests that the market is maturing, and investor confidence is growing, potentially leading to more exits and acquisitions in the future. Despite a slowdown in the first half of the year, this appears to be more related to the overall market situation rather than specifically climate tech.

6. Clean Energy

Investments in the energy sector are increasing to reduce reliance on fossil fuels and achieve net-zero goals, leading to growth in solar and wind power. Renewable energy developers are also exploring biofuels and geothermal energy. Clean energy startups are developing off-grid solutions for individual households and remote communities.

Energy distribution companies are expanding their renewable energy portfolios to decarbonize the grid. Advances in hydrogen and nuclear energy are also contributing to a carbon-free energy economy. Companies are working to make these technologies more cost-effective and scalable.

Marvel Fusion, a German startup, is advancing clean energy through quantum-enhanced nuclear fusion. Their technology uses ultrashort laser pulses and nanostructure fuel pallets to initiate fusion, enabling zero-emission energy generation.

Reel, a Danish startup, facilitates sustainable electricity procurement by connecting clients’ energy consumption to specific solar or wind parks. The startup supplies an equivalent amount of clean energy to the grid for every unit of energy used from the grid, automating sustainability reporting and allowing businesses to attain net zero without capital expenses.

7. Carbon Credits

Carbon credits are a common method for companies to offset their carbon emissions without reducing production. However, this approach is often seen as greenwashing and has led to growing distrust. The difficulty in proving actual carbon capture and poor biodiversity management further complicate the issue.

There is also confusion about voluntary vs. compliant and REDD+ mechanisms, with many struggling to understand the differences. Concerns about the legitimacy of carbon credits have arisen, with some companies convicted for carbon credit scams. Investigations have revealed that millions of illegitimate carbon credits have been sold over the years.

This is clearly implying that navigating carbon credits is challenging and the situation doesn’t seem likely to improve in the near future.

8. Carbon Capture, Utilization, and Storage (CCUS) – Energy Systems

Startups are innovating in carbon capture and sequestration to combat climate change. Planboo uses soil carbon sequestration, maintaining bamboo carbon sinks and producing biochar for high-quality carbon credits. This aids in offsetting emissions, repairing soils, and ecosystem restoration.

Holy Grail develops direct air capture units that ionize CO2 molecules from atmospheric air, making the technology cost-effective and scalable. These solutions enhance the adoption of CCUS in both industrial and residential settings, accelerating the transition to net zero.

9. Low-carbon Manufacturing

Low-carbon manufacturing, a climate-friendly solution, minimizes the carbon footprint of manufacturing processes by reducing:

– Greenhouse gas emissions

– Energy consumption

– Waste generation

– Resource depletion

Manufacturing units, which are typically resource-intensive and contribute significantly to GHG emissions, are now being revolutionized by advancements in low-carbon manufacturing methods.

Startups like Holy Technologies and Heaten are at the forefront of this change.

Holy Technologies, a German startup, manufactures recyclable carbon fiber components used in various industries. On the other hand, Heaten, a Norwegian startup, has developed ‘HeatBooster,’ an industrial heat recovery system that recycles energy and reduces dependence on non-renewable energy sources.

ABB’s production hub in Xiamen exemplifies this by integrating renewable energy sources, achieving 50% energy decarbonization and cost reduction. Government initiatives like the SILC program further support this industry by financing the development of low-carbon technologies.

10. Carbon Data & Analytics

Addressing climate change requires precise data, which startups gather using IoT sensors and satellites. These startups also offer carbon accounting platforms for businesses to evaluate their carbon projects. UK-based Sylvera provides data-driven intelligence for carbon projects, enabling businesses to invest in the right projects.

US-based Green Project Technologies offers an ESG data collection and reporting platform, increasing visibility into vendor performance and facilitating the generation of portfolio-wide ESG reports.

11. Biodiversity

The WWF’s 2022 report reveals a 69% drop in global wildlife populations since 1970, impacting over half of the world’s total GDP. Climate change and environmental crises affect both society and economy.

Biodiversity is key to addressing these issues. Startups are increasingly focusing on restoring Earth’s biodiversity. Examples include Single.Earth, which is developing a nature-backed currency, Forestbase, which is making forests tradable assets, and Pivotal, which incentivizes nature restoration.

The future promises more such biodiversity-focused startups in the climate tech sector.

12. Agtech and Food Tech or Foodtech

Food and agriculture are crucial but often unsustainable. To meet sustainable development goals, businesses must address this issue. Despite a funding dip in 2022, experts predict a brighter, greener future for agrifoodtech by 2023/2024.

Moreover, food production, a significant source of carbon emissions, faces rising demands. Startups like Klim promote regenerative agriculture, financially supporting farmers for CO2 sequestration. Meat.The End, an Israeli startup, innovates plant-based meat production for climate-positive alternatives, meeting consumer expectations in a sustainable manner.

Factors like inflation, food insecurity, and unpredictable weather make investing in agtech urgent. More VCs view agrifoodtech as key to climate tech Sectors like regenerative and precision agriculture have grown significantly. Expect more news like Agreena, a Danish agtech company, raising $50 million in funding.

13. Sustainable Land & Water Management

Deforestation, largely due to agriculture and housing, reduces Earth’s carbon capture. Government policies often encourage this, making reforestation crucial to combat global warming.

Climate tech startups are addressing land and water pollution from industrial waste. They offer land restoration, including wetland regeneration, and innovative water purification solutions.

For instance, Australian startup Reclaimed Spaces provides land reclamation services using native plants and sustainable materials.

Singaporean startup Ecoflow develops sustainable water technology, using IoT to monitor water systems in real time, providing insights to save water costs and increase infrastructure efficiency.

14. PropTech and Green Construction

The UN reports that nearly 40% of global CO2 emissions stem from the real estate sector, with 70% from building operations and 30% from construction. Proptech offers a greener approach to real estate.

Major players like JLL are investing in climate-tech-focused companies and launching non-profits to combat climate change. Achieving net zero in global real estate will require $1.7 trillion annually until 2050, presenting both a challenge and opportunity.

15. Top Talent

The Yale Center for Business and the Environment suggests that top talents in 2023 and beyond will be drawn to climate tech. Young professionals believe companies should address climate and social crises.

78% prefer companies with good environmental practices, and 26% would reject job offers from organizations with poor environmental practices, even with high salaries. Thus, the greener the business, the more likely it is to attract ambitious professionals.

How’s the future: Green(er)? Read 👇

As we navigate the road of 2023, it’s clear that the journey towards a greener future is not without its bumps. Yet, these challenges are not the end, but merely stepping stones on the path to progress.

Climate change is not just a global issue, but a business one too. Consumers and governments alike are taking a stand, pushing for legislation to slow down and hopefully reverse climate change. Businesses may find themselves at a crossroads – to willingly embrace greener practices or be compelled to by law.

In the words of Thomas Edison, a renowned inventor,

“Genius is one percent inspiration, ninety-nine percent perspiration.”

This quote serves as a reminder that achieving our green goals will require not just innovative ideas, but also the hard work and dedication to turn these ideas into reality.

The future is indeed looking green(er), and it’s up to humans, that is, all of us to roll up our sleeves and make it happen!